Before I get into my February stock purchase post, I want to celebrate my mom getting her first COVID Vaccine shot today! Took a lot of searching and some help from a vaccine angel! Yay! Here's the post-shot 15 minute wait area.
It was a very active month in February for shopping for some solid companies that will pay me dividends.
I was eager to gain more of a return and decided to harvest some profits from Williams-Sonoma (WSM), which was over a 120% gain, take the funds and invest in companies that had a larger yield than the one I just sold.
This allowed me to take the $2,356.63 and take the $38.16 annual dividend hit and turn it into a $142.65 annual dividend. BAM!
One of my additions this month was a beginning entry in Snap-On (SNA), one that has been sitting on my watch list for most of the past 2 years. They were still passing my stock screener:
- Low P/E ratio. A sign that the company is at a good valuation at the moment. SNA is at 19.08. I don't want to overpay for my shares.
- Good dividend payout ratio. SNA come in at a 43% ratio, which is wonderful. When a company is around 50% dividend payout, it means they want to not only share their profits with their stock holders, but also have room to grow the company, grow the dividend, or cover the dividend when falling on hard times. SNA fits the bill
- A track record of increasing the dividend. Over the past 5 years, they have increased the dividend by 15%. That's inflation beating
- Lage company. Not a major factor, but I want a market capitalization of over $3 billion. Larger companies that have good fundamentals seem to not fail very often... SNA is a 11.8 billion dollar company.